Transcript Retailing Chapter 2

History of Sports and
Entertainment Marketing
Similarities in Marketing
Differences in Marketing
2
Sports and Entertainment
Connections
What do sports and entertainment have in
common? They have thrilled and entertained
people for centuries—since the ancient Olympic
games and Greek plays.
3
Marketing Today
Sports and entertainment
vendors compete for a
share of the money people
spend on recreation.
vendors sellers
of products
Sports and entertainment
marketing directs consumers
toward sports and
entertainment products.
product a good or
service that any for-profit
industry sells to its
customers
4
Marketing Similarities
The marketing of sports and
entertainment products differs
from marketing traditional
products in the following four
areas:
Product
– Endorsement
– Core product
– Ancillary product
– Revenue
continued
endorsement approval or
support of a product or
idea, usually by a celebrity
core product the main
product, such as sports
event, movie, stage show,
or book
ancillary product a
product related to or
created from the core
product
revenue gross income
5
Marketing Similarities
continued
piracy the unauthorized
use of another’s music,
movies, or copyrighted
material
Place
Price
– Piracy
– Royalty
– Copyright
royalty a payment for
material that has been
copyrighted, or legally
declared as belonging to
the creator
continued
6
Marketing Similarities
continued
Promotion
– Product tie-in
– Cross-promotion
product tie-in use of
ancillary products such
as merchandise as
promotional tools
cross-promotion any
form of communication
through which one
industry relies on another
industry to promote its
product
7
Marketing Similarities
Convergence expands the
potential for profit in sports
marketing and entertainment
marketing.
convergence the
overlapping of product
promotion
Convergence and crosspromotion help to develop
synergy.
synergy a combined
action that occurs when
products owned by one
source promote the
growth of related products
8
Different Players,
Different Games
The differences between sports and entertainment
can be found in three areas:
Consumer loyalty
Product
Revenue stream
9
Differences in Consumer
Loyalty
If sports fans feel their team
is trying to win, the team can
retain its consumer loyalty.
consumer loyalty
consumers’ attitude that
occurs when they are
happy with a company
and become repeat
customers
The entertainment consumer
is not motivated by brand or
team loyalty, but by a desire
for satisfying entertainment.
10
Differences in Revenue
Stream
Sports franchises earn
revenue from sponsorship.
sponsorship the
promotion of a company
in association with a
property
Sports franchises also earn
revenue from advertising
and broadcast rights.
11